THIS IS THE PRESENTATION ON CAUSES AND EFFECTS OF UNEMPLOYMENT.

1. GANDHINAGAR INSTITUTE OF
TECHNOLOGY
• ACTIVE LEARNING ASSIGNMENT
• ENGINEERING ECONOMICS AND MANAGEMENT (2130004)
• TOPIC : EFFECT OF UNEMPLOYMENT
• INFORMATION TECHNOLOGY DEPARTMENT
• PREPARED BY :
• VAIBHAV KHATRI

2. CONTENTS
UNEMPLOYMENT
CLASSIFICATION OF UNEMPLOYMENT
CAUSES
EFFECTS OF UNEMPLOYMENT
MEASURES OF UNEMPLOYMENT
UNEMPLOYMENT AND ECONOMIC GROWTH
SOLUTIONS

3. UNEMPLOYMENT
• UNEMPLOYMENT REFERS TO THE SITUATION IN WHICH
THE WORKERS DO NOT GET EMPLOYMENT.

4. CLASSIFICATION OF UNEMPLOYMENT
Involuntary
Voluntary
Disguised
Demand Deficiency
Seasonal
Structural
Frictional
Unemployment

5. VOLUNTARY UNEMPLOYMENT
• UNEMPLOYMENT THAT RESULTS WHEN RESOURCES DECIDE TO
LEAVE ONE JOB OFTEN IN SEARCH OF ANOTHER.

6. INVOLUNTARY UNEMPLOYMENT
• THE CONTRAST TO VOLUNTARY UNEMPLOYMENT IS INVOLUNTARY
UNEMPLOYMENT IN WHICH RESOURCES ARE FORCED OUT OF WORK
, ALSO KNOWN AS FORCED UNEMPLOYMENT.

7. FRICTIONAL UNEMPLOYMENT
• IT RESULTS BECAUSE IT TAKES TIME FOR WORKERS TO SEARCH FOR
THE JOBS THAT BEST SUIT THEIR TASTES AND SKILLS.

8. STRUCTURAL UNEMPLOYMENT
• STRUCTURAL UNEMPLOYMENT ARISES BECAUSE THE NUMBER OF
JOBS AVAILABLE ARE INSUFFICIENT.

9. SEASONAL UNEMPLOYMENT
• SEASONAL UNEMPLOYMENT OCCUR WHEN AN OCCUPATION IS NOT
IN DEMAND AT CERTAIN SEASON.

10. UNEMPLOYMENT DUE TO DEMAND
DEFICIENCY
• IT ARISES WHEN PEOPLE ARE OUT OF WORK BECAUSE OF LACK OF AGGREGATE
DEMAND.

11. DISGUISED UNEMPLOYMENT
• WHEN PEOPLE DO NOT HAVE PRODUCTIVE FULL-TIME EMPLOYMENT, BUT ARE
NOT COUNTED IN THE OFFICIAL UNEMPLOYMENT STATISTICS.

12. CAUSES OF UNEMPLOYMENT
• HIGH POPULATION GROWTH
• ABSENCES OF EMPLOYMENT OPPORTUNITIES
• INCREASING TURNOUT OF STUDENTS FROM UNIVERSITIES
• SLOW DEVELOPING INDUSTRIES
• INFLATION
• RECESSION
• CHANGES IN TECHNOLOGY
• WILLINGNESS TO WORK
• DISABILITY
• DISCRIMINATING FACTORS

13. EFFECTS OF UNEMPLOYMENT
• ECONOMIC EFFECT
1. WASTAGE OF HUMAN RESOURCES
2. LOW INCOME
3. LOW SAVING
4. LOW CAPITAL FORMATION
5. LOW LIVING STANDARD
6. LOW LABOUR PRODUCTIVITY

14. EFFECTS OF UNEMPLOYMENT
• SOCIAL EFFECT
1. WIDE GAP BETWEEN RICH AND POORCLASS CONFLICTS
2. SOCIAL UNREST
3. MORE ILLEGAL ACTIVITIES

15. EFFECTS OF UNEMPLOYMENT
• AT INDIVIDUAL LEVEL
1. MENTAL STRESS
2. LOSS OF SELF ESTEEM
3. DIRECTLY LINKED TO POVERTY

16. MEASURING UNEMPLOYMENT
• EMPLOYED ANY PERSON 16 YEARS OLD OR OLDER
1. WHO WORKS FOR PAY, EITHER FOR SOMEONE ELSE OR IN HIS OR HER OWN BUSINESS FOR 1
OR MORE HOURS PER WEEK,
2. WHO WORKS WITHOUT PAY FOR 15 OR MORE HOURS PER WEEK IN A FAMILY ENTERPRISE,
OR
3. WHO HAS A JOB BUT HAS BEEN TEMPORARILY ABSENT WITH OR WITHOUT PAY.
• UNEMPLOYED
• A PERSON 16 YEARS OLD OR OLDER WHO IS NOT WORKING, IS AVAILABLE FOR WORK, AND HAS
MADE SPECIFIC EFFORTS TO FIND WORK DURING THE PREVIOUS 4 WEEKS.

17. SOLUTIONS
• ENCOURAGEMENT TO SMALL ENTERPRISES
• SUBSIDIES ON THE BASIS OF EMPLOYMENT
• ENCOURAGEMENT OF NEW GROWTH CENTERS IN SMALL TOWNS AND RURAL AREAS

18. UNEMPLOYMENT CAN BE REDUCED BY
• INCREASED GOVERNMENT EXPENDITURE
• LOWER TAXATION
• LOWER INTEREST RATES
• EMPLOYMENT SUBSIDIES

19. THANK YOU…